Lucid Group (NASDAQ: LCID) shares soared over 27% on Monday following the announcement of a three-year agreement with Ma’aden Rolling. The deal involves the provision of aluminum panels for Lucid Group’s U.S. manufacturing facilities.
Lucid (NASDAQ: LCID) has signed a three-year deal with Ma’aden Rolling. The agreement entails the provision of aluminum panels to Lucid manufacturing facilities in the United States.
Ma’aden Rolling is a subsidiary of Saudi Arabia Mining Co., a state-owned entity. Meanwhile, Lucid is predominantly owned by the Public Investment Fund of Saudi Arabia.
The agreement is expected to boost the production capacity of Lucid. The government of Saudi Arabia has committed to purchasing up to 100,000 Lucid electric vehicles within the next decade. The government appears inclined to endorse the shift to non-combustion technologies and stimulate its automotive industry.
Since July 2023, Saudis have had the opportunity to directly lease Lucid vehicles from the manufacturer, contributing to the Kingdom’s sustainability initiative.
The recent progress follows a Reuters article highlighting potential hurdles for the company in Saudi Arabia. The report underscores concerns about the Kingdom’s limited infrastructure, workforce, and raw materials, which are anticipated to present substantial challenges in the production of vehicles.
Lucid (NASDAQ: LCID) Stock Reaction
LCID stock surged 27.16% on Monday. The traders had exchanged hands with 123,553,591 (123.55 million) shares compared to the average daily trading volume of 36.33 million.
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